Sri Lanka stock close flat

Nov 04, 2011 (LBO) – Sri Lanka stocks closed flat in thin trading Friday while sugar producer halted a capital raising, after it was listed in a bill to expropriate land in over three dozen private firms. The Colombo All Share Index closed up 0.14 percent at 6.406.5 points and the Milanka Index of liquid stocks slid 0.18 percent to 5,698.8 points.

Earlier in the week the market closed up 2.7 percent, in what some brokers called the ‘Malik rally after Sri Lanka’s cabinet of ministers removed the securities watchdog Malik Cader who has started to crack down on microcap fraud and insider dealing.

Pelwatte Sugar, a cane farm in which 6,300 acres have listed for state take-over in a bill to be brought to parliament next week slid 1.90 to close at 27.00 rupees. The firm halted a 300 million capital raising, ahead of the state take-over of land.

Meanwhile owners of an unlisted sugar company, which is also slated for take-over said gangs connected to a ruling party politician in Sri Lanka’s east where it is located stormed its premises and occupied it. Asian Alliance Insurance a stock that has seen steep gains in recent weeks fell 7.90 to 201.0 rupees, Asiri Central Hospitals fell 10 rupees to 200.00, Bairaha Farms fell 5.50 rupees to 210.00.

Beruwala Walk Inn fell 30.00 rupees to 160.00, Capital Development and Investment Company fell 63.70 to 306.10 rupees.

Colombo Investment Trust gained 19.00 rupees to close at 319.00, Colombo Pharmacy rose 60.20 rupees to 1,334.00, Haycarb rose 1.20 to close at 155.00 while Kalamazoo systems, an illiquid stock rose 600.00 rupees to 2,800.00.

Dialog Axiata was flat at 8.10 rupees, Hatton National Bank fell 3.00 rupees to close at 185.00, Sampath Bank closed up 1.00 rupees at 210.00 and Commercial Bank fell 30 cents to close at 108.70 rupees.